MARKET CLOSE: Pumpkin Patch rises on US retreat

Tuesday 30th June 2009

New Zealand shares rose, led by Pumpkin Patch Ltd (NZX: PPL ), after the children’s clothing chain said it would close most of its U.S. stores, while a survey showed business confidence improved for a second month.

Pumpkin Patch rose 10% to $1.49. The retailer intends to build its U.S. presence from a smaller base, closing mostly newer stores that had struggled to gain traction in difficult markets, said chief executive Maurice Prendergast.

Fletcher Building (NZX: FBU ) climbed 3% to $6.58 and Port of Tauranga (NZX: POT ) gained 2.3% to $6.15, pacing the index’s advance after the National Bank Business Outlook survey showed its second monthly positive reading.

Telecom Corp (NZX: TEL ) slipped 0.4% to $2.73 after the Commerce Commission rejected the level of fees proposed by Telecom and Vodafone to terminate calls on their networks and recommended the prices be regulated.

A net 5.5% of firms expect business conditions to improve in the next 12 months, up from 1.9% last month when the series reported optimists outweighed pessimists for the first time since September last year.

Even though the economy continues to shrink, “the positive spin is that the pace of contraction is occurring at a slower rate,” said Cameron Bagrie, National bank’s chief economist.

Agriculture related companies fell as the survey showed profit expectations from the sector have retreated on the prospect of Fonterra Cooperative Group’s reduced payment for this season.

NZ Farming Systems Uruguay (NZX: NZS ) dropped 10% to 45 cents and PGG Wrightson (NZX: PGW ), the nation’s biggest rural services company, fell 3.4% to $1.13.

Tourism Holdings Ltd (NZX: THL ), which relies of overseas tourists to rent its campervans, fell 6.7% to 42 cents as the New Zealand dollar held above 65 U.S. cents. The company, which is dropping out of the NZX 50, has announced a wage freeze as it adjusts to the downturn in demand.

Air New Zealand (NZX: AIR ) fell 1.1% to 90 cents after the airline lost a court challenge to increased landing charges at Wellington International Airport. The Court of Appeal upheld a High Court ruling that the airport could increase fees in steps as long as the airline was consulted, according to the Dominion Post.

Jeweller Michael Hill International (NZX: MHI ) fell 9% to 60 cents and Skellerup Holdings (NZX: SKU ) declined 8.9% to 51 cents.

The NZX 50 Index rose 20.98, or 0.8%, to 2796.10, rallying into the end of the quarter and bringing its advance in the past three months tom about 5%. Within the index, 23 stocks rose, 22 fell and five were unchanged. Turnover was $157.8 million, making it one of the busiest days this year.

Businesswire.co.nz

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